CANNAINVESTOR Magazine June 2016 | Page 47

WHO DOES NOT WANT TO OWN SHARES IN THE NEXT APPLE OR TESLA? Every Retail Investor dreams of buying shares of a company with untapped market value where an ultra low investment will translate into early retirement! Is the next Apple or Tesla hiding amongst the weed? This industry is in such a state of constant turmoil and flux that the current and past environment may not be relevant. For example, what if a company with a low share price and mounting losses is the beneficiary of new markets opened up through legislation (edibles becoming legal in Oregon in June for example)? VERY RECENT EXAMPLES OF ECOFORMING • • • • • The number of additional States looking to legalize or expand (eg: Oregon to legalize edibles effective June 2016). Continuous upward revisions on the industry - $35 Billion or more in 2020 in the U.S. alone. Germany to legalize MMJ in 2017 DEA could reschedule marijuana soon. Canada plans to introduce legislation to legalise recreational use in 2017. • • • • • • MMJ treatment for schizophrenia Ground-breaking research in the treatment of Schizophrenia without the adverse side effects of conventional medications. Industry’s first possible REIT announced. USA Government drops its forfeiture case against Haborside Health Center. FDA to regulate e-cigs and Hookah NASDAQ declines MassRoots listing AND many more game changing shocks to the landscape! A GRASS ROOTS MOVEMENT FUELED BY THE BUDDING RETAIL INVESTOR For our purposes, we will treat “Top to Bottom” approach the same as Fundamental Analysis and the “Bottom to Top” approach the same as Technical Analysis. FUNDAMENTALS RETAIL INVESTOR: LONG/INVESTOR • • • • • • Politically stable Economically stable Industry expected to grow from $6.7B in 2016 to $35B in 2020 and these values are continuously being revised upwards as more jurisdictions are legalizing Financial Statement analysis Diversified Industry. Undervalued Companies TECHNICALS RETAIL INVESTOR: TRADER • • • • • Stocks of some companies have predictable and repeating patterns Long or Short techniques Shares of many companies are in high demand facilitating relative ease to enter and exit positions. “Stink bids” are often successful. Share prices temporarily move fast (before returning) on both rumour and news. Challenging due to a lack of history in an continuously changing ecosystem! 47